India Cement Sector: 1Q preview: Possible cost-led volatility; low base for some

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India Cement Sector: 1Q preview: Possible cost-led volatility; low base for some

J P M O R G A N Asia Pacific Equity Research

02 July 2026

India Cement Sector

1Q preview: Possible cost-led volatility; low base for

some

June quarter earnings for Indian cement companies could have an additional source Head of India Research

ACof uncertainty - costs on the back of increased raw material / energy / freight. While Sanjay Mookim

most expect a majority of the conflict-related costs to manifest in the September (91-22) 6157-3600

quarter, it is possible that some increases may occur sooner. Net cement sanjay.mookim@jpmorgan.com

realizations should increase QoQ for most, on the back of price hikes taken early Atishy Rathi, CFA

in the quarter, but volumes should decline QoQ. Companies such as SRCM and (9122) 6157-3589

DALBHARA have a low base for volumes from the previous year, and could report atishy.rathi@jpmchase.com

J.P. Morgan India Private Limited, J.P. Morgan

stronger headline volumes YoY (especially SRCM in the North). Stock reactions Tower, Santacruz(E), Mumbai - 400098, SEBI

should be relatively muted though - and may be driven more by company Registration: INH000001873, (91-22) 6157-3000.

commentary on demand/cost forecasts than by earnings beats or misses, we think.

Prefer UTCEM.

• Demand and pricing reasonably well understood: Changes in sales volumes

/ realizations are key variables to watch for Indian cement companies each

quarter, and should remain so in 1Q. Overall industry volumes should decline

QoQ seasonally - and possibly as some cement up-stocking likely happened in

March. Sales in the East could be particularly affected by the West Bengal

elections, though a delayed monsoon could support volumes in most parts of

India.